New Delhi: Markets are likely to be very volatile during this shortened holiday week and will continue to be guided by COVID-related updates, global indices and quarterly earnings, analysts said.
The equity markets would remain closed Wednesday for Ram Navami.
âWe expect volatility to remain elevated as the market should continue to focus on updates to state restrictions and the spread of the virus. Stock-specific moves based on future results can be expected in the market, âsaid Vinod Nair, head of research at Geojit Financial Services.
âThis week is also a shortened holiday week and we expect volatility to remain high. In the absence of any major events, the focus would remain on earnings as companies like ACC, HCL Tech and M&M Finance will announce their results. In addition, COVID-related updates and clues from global markets will be on the radar, “said Ajit Mishra, vice president of research, Religare Broking.
NestlÃ© India, Rallis India and Tata Elxsi are the other big companies to announce their results this week.
âGoing forward, Indian markets are likely to be very volatile and would be an interaction between the resurgence of COVID-19 cases and the pace of vaccination. As the pace of vaccination picks up, we expect the narrative to gradually shift from Covid-19 and restrictions to cyclical growth / recovery and rebound in corporate earnings, âsaid Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services Ltd.
In addition, the movement of the rupee, the investment model of foreign institutional investors and Brent crude would also be watched by investors.
Nirali Shah, Head of Equity Research at Samco Securities, said: âWith major Indian cities experiencing partial closures, markets may continue to remain volatile at least until uncertainty on the growing market front. case dissipates.
Market participants should not read much of India Inc.’s numbers and should place the highest importance on management commentary in order to gauge future growth prospects in the midst of wave two.
During the truncated holiday last week, the 30-stock BSE benchmark lost 759.29 points or 1.53%.